Basics of Information Systems

Komal Beg, BCAS

Information Concepts:
Data, Information, and Knowledge
Data: raw facts
Alphanumeric, image, audio, and video

Information: collection of facts organized in

such a way that they have additional value

beyond the value of the facts themselves
Value of Information is directly linked
to how it helps decision makers achieve their
organizations goals and can be measured
in time required to make a decision
Increased profits to the company
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Data, Information, and Knowledge

Figure 1.2: The Process of Transforming Data into Information

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The Characteristics of Valuable Information

Table 1.2: Characteristics of Valuable Information

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The Characteristics of Valuable Information

(continued)

Table 1.2: Characteristics of Valuable Information (continued)

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What Is an Information
System?

Figure 1.3: The Components of any Information System

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Computer-Based Information
Systems
Computer-based information system

(CBIS): single set of hardware, software,

databases, telecommunications, people,
and procedures configured to collect,
manipulate, store, and process data into
information

Computer-Based Information
Systems
CBIS components
Hardware: computer equipment used to

perform input, processing, and output

activities
Software: computer programs that govern the
operation of the computer
Database: organized collection of facts and
information
Telecommunications: electronic transmission
of signals for communications
Networks: connect computers and equipment
in a building, around the country, and around
the world
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Business Information
Systems
Most common types of information systems

used in business organizations

Electronic and mobile commerce systems
Transaction processing systems
Management information systems
Decision support systems
Specialized business information systems

Electronic and Mobile

Commerce
E-commerce: any business transaction

executed electronically between parties

Companies (B2B)
Companies and consumers (B2C)
Consumers and other consumers (C2C)
Companies and the public sector
Consumers and the public sector

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Transaction Processing
Systems
Transaction: business-related exchange
Payments to employees
Sales to customers
Payments to suppliers

Transaction processing system (TPS):

organized collection of people, procedures,

software, databases, and devices used to
record completed business transactions
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Additional Business Information

Systems
Management Information Systems (MIS)
provide routine information to managers and

decision makers
Knowledge Management Systems (KMS)
create, store, share, and use the organizations

knowledge and experience

Artificial intelligence (AI)
field in which the computer system takes on

the characteristics of human intelligence

Decision support system (DSS)
used to support problem-specific decision

making

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Hardware and Software

Basics

13

Hardware Components
Central processing unit (CPU)
Arithmetic/logic unit (ALU): performs

calculations and makes logical comparisons

Control unit: accesses, decodes and
coordinates data in CPU and other devices
Primary memory: holds program

instructions and data for processing

Secondary storage: more permanent
storage
Input and output devices
Communications devices
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Hardware Components
(continued)

Figure 2.1: Hardware Components

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Processing and Memory Devices:

Power and Speed
System unit
Houses the components responsible for

processing (the CPU and memory)

All other computer system devices are linked
either directly or indirectly into the system
unit housing
Clock speed
series of electronic pulses produced at a

predetermined rate that affects machine

cycle time
Clock speed is often measured in megahertz
(MHz) for millions or gigahertz(GHz) for
billions of cycles per
16 second

Memory and Storage

Characteristics and Functions
Types of Memory
Random access memory (RAM)
Temporary
Volatile
Read-only memory (ROM)
Usually nonvolatile

Secondary storage
Also called permanent storage
Nonvolatile
Greater capacity and greater economy than memory
Measured in bytes: kilo, mega, giga, tera
Different access methods
Sequential access: data must be accessed in the order in which it is stored
Sequential access storage devices (SASDs)
Direct access: data can be retrieved in any order
Direct access storage devices (DASDs)

17

Secondary Storage Devices

Magnetic tapes
Secondary storage used primarily for backups

Magnetic disks
Direct access secondary storage, e.g., hard disk

RAID
Stores extra bits so that data can be reconstructed if system fails

SAN
Provides high-speed connections between data storage

devices and computers over a network Optical disks

Direct access optical disc, e.g., CD-ROM

Digital video disk (DVD)

Stores several gigabytes of data

Flash memory
Nonvolatile silicon computer chip

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Input Devices
Personal computer input devices
Keyboard, mouse

Speech-recognition technology
Input devices that recognize human speech

Digital cameras
Input device used with PC to record/store images in digital form

Terminals
Input and display devices that perform data entry and input at the same time

Touch-sensitive screens
Allow display screens to act as input devices as well as output devices

Bar-code scanners
Employs a laser scanner to read a bar-coded label

Magnetic ink character recognition (MICR) devices

Code data on banking forms, such as checks Pen input devices
Activate a command, enter handwritten notes, and draw objects

Radio Frequency Identification (RFID)

Employs a microchip with an antenna to broadcast its unique identifier and

location to a receiver

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Output Devices
Display monitors (CRTs)
Output quality measured by number of pixels and dot pitch

Liquid crystal displays (LCDs)

Easier on eyes, use less electricity, take up less space than

CRTs
Organic light-emitting diodes (OLEDs)
Directly emits light rather than using backlight

Sharper colors and thinner displays Printers and

plotters: hard copy output

Printers: laser, inkjet
Plotters: used for general design work

Digital audio player

Stores, organizes, and plays digital music files

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Overview of Software
Computer programs: sequences of

instructions for the computer

Documentation: describes program
functions
Systems software: coordinates the
activities of hardware and programs
Application software: helps users solve
particular problems

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Systems Software
Controlling operations of computer hardware
Supports application programs problem-solving capabilities
Different types of systems software include:
Operating systems programs that control the hardware and

interface with applications

Common hardware functions
Get

input (e.g., keyboard)

Retrieve data from disks and store data on disks
Display information on a monitor or printer
User interface
Allows individuals to access and command the computer system
Command-based user interface: uses text commands
Graphical user interface (GUI): uses icons and menus to send
commands to the computer system

Utility programs

Application Software
Give users the ability to solve problems and

perform specific tasks

Interact with systems software; systems
software then directs the hardware to
perform tasks
Proprietary software: unique program
for a specific application, usually developed
and owned by a single company
Off-the-shelf software: existing software
program that can be purchased
Customized package
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Personal Application Software

Serves the needs of an individual user
Includes personal productivity software
Enables users to improve their personal

effectiveness

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Personal Application Software

(continued)

Table 2.7: Examples of Personal Productivity Software

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Personal Application Software

(continued)

Table 2.7: Examples of Personal Productivity Software (continued)

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Workgroup Application
Software
Workgroup application software: support

teamwork, whether people are in the same

location or dispersed around the world
Groupware: software that helps groups of
people work together more efficiently and
effectively

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Enterprise Application
Software
Software that benefits an entire

organization
Enterprise resource planning (ERP)
software: programs that manage a
companys vital business operations for an
entire multisite, global organization

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Enterprise Application Software

(continued)

Table 2.10: Examples of Enterprise Application Software

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Information, Decision Support,

and Specialized Software
Used in businesses of all sizes and types to

increase profits or reduce costs

Available in every industry
Example: analysis to increase the cure rate for

cancer

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Data Management

Data Management
Without data and the ability to process it,

an organization could not successfully

complete most business activities
Data consists of raw facts
For data to be transformed into useful
information, it must first be organized in a
meaningful way

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The Hierarchy of Data

Bit (a binary digit): a circuit that is either on or off
Byte: eight bits
Character: basic building block of information
Each byte represents a character
Can be an uppercase letter, lowercase letter, numeric

digit, or special symbol

Field: typically a name, number, or combination of

characters that describes an aspect of a business object

or activityRecord: a collection of related data fields
File: a collection of related records
Database: a collection of integrated and related files
Hierarchy of data: bits, characters, fields, records,
files, and databases
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The Hierarchy of Data

Figure 3.1: The Hierarchy of Data

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Data Entities, Attributes, and

Keys
Entity: a generalized class of people,

places, or things (objects) for which data is

collected, stored, and maintained
Attribute: characteristic of an entity
Data item: value of an attribute
Key: field or set of fields in a record that is
used to identify the record
Primary key: field or set of fields that
uniquely identifies the record

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Data Entities, Attributes, and

Keys

Figure 3.2: Keys and Attributes

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The Database Approach

Traditional approach to database

management
separate data files are created for each

application
Results in data redundancy (duplication)
Data redundancy conflicts with data integrity

Database approach to database

management:
pool of related data is shared by multiple

applications
Significant advantages over traditional approach
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The Database Approach to Data

Management

Figure 3.3: The Database Approach to Data Management

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The Database Approach

Advantages

Table 3.1: Advantages of the Database Approach

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The Database Approach

(continued)

Table 3.1: Advantages of the Database Approach (continued)

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The Database Approach

Disadvantages

Table 3.2: Disadvantages of the Database Approach

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Data Modeling and the Relational

Database Model
When building a database, consider:
Content: What data should be collected, at

what cost?
Access: What data should be provided to
which users and when?
Logical structure: How should data be
arranged to make sense to a given user?
Physical organization: Where should data be
physically located?

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Data Modeling
Building a database requires two types of

designs
Logical design
Abstract model of how data should be structured
and arranged to meet an organizations information
needs
Data model: a diagram of data entities and their
relationships
Entity-relationship (ER) diagrams: data
models that use basic graphical symbols to show
the organization of and relationships between
data
Physical design
Fine-tunes the logical database design for
43 considerations
performance and cost

ER diagram for a Customer Order

Database

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ER diagram Showing the Relationship

between the Manager, Department and
Project

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Implementing the Relational

Database Model
data elements are placed in two-

dimensional tables (relations), which are

the logical equivalent of files
Each row of a table represents a data entity
Columns of the table represent attributes
The domain of the database model consists
of all of the allowable values for data
attributes i

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The Relational Database Model

Figure 3.5: A Relational Database Model

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Manipulating Databases
Selecting: eliminates rows according to

criteria
Projecting: eliminates columns in a table
Joining: combines two or more tables
Linking: relates or links two or more tables
using common data attributes

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Manipulating Data (continued)

Figure 3.7: Linking Data Tables to Answer an Inquiry

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Database Management Systems

(DBMS)
Interface between:
Database and application programs
Database and the user

Creating and implementing the right

database system ensures that the database

will support both business activities and
goals
DBMS: a group of programs used as an
interface between a database and application
programs or a database and the user
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Overview of Database Types

Flat file
Simple database program whose records

have no relationship to one another

Single user
Only one person can use the database at a

time
Examples: Access, FileMaker, and InfoPath
Multiple user
Allows dozens or hundreds of people to

access the same database system at the

same time
Examples: Oracle, Sybase, and IBM
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Distributed Databases
Distributed database
Data may be spread across several smaller

databases connected via telecommunications

devices
Corporations get more flexibility in how
databases are organized and used
Replicated database
Holds a duplicate set of frequently used data

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Telecommunications

Basic Concepts of
Telecommunications
Telecommunications: electronic

transmission of signals for communications

Computer network: communications media,
devices, and software needed to connect
two or more computer systems or devices
Network types: personal area network
(PAN), local area network (LAN),
metropolitan area network (MAN), wide
area network (WAN), and international
networks
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The Internet
Internet: collection of interconnected

networks, all freely exchanging information

Internet Protocol (IP): communication
standard that enables traffic to be routed
from one network to another as needed
Uniform Resource Locator (URL): an
assigned address on the Internet for each
computer

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Business Networks
Intranet: internal corporate network built

using Internet and World Wide Web

standards and protocols
Extranet: network based on Web
technologies that links selected resources
of a companys intranet with its customers,
suppliers, or other business partners

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Systems Development

An Overview of Systems
Development
Managers and employees in all functional

areas work together in a business

information system
Users help and often lead the way with
development process
Participants in systems development:
Determine when a project fails
Are critical to systems development success

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Participants in Systems
Development
Development team consists of the following:
Project managers: coordinate system

development effort
Stakeholders: directly or indirectly benefit from
the project
Users: interact with the system regularly
Systems analysts: analyze and design business
systems
Programmers: modify or develop programs to
satisfy user requirements
Various support personnel: specialists, vendors
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Information Systems Planning and

Aligning Corporate and IS Goals
Information systems planning:

translating strategic and organizational

goals into systems development initiatives
Aligning organizational goals and IS goals is
critical for any successful systems
development effort
Determining whether organizational and IS
goals are aligned can be difficult

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Information Systems Planning and Aligning

Corporate and IS Goals (continued)

Figure 8.2: Information Systems Planning

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Systems Development Life

Cycles
The systems development process is also

called a systems development life cycle

(SDLC)
Common SDLCs
Prototyping
Rapid application development (RAD)

Systems
development approach that employs tools,

techniques, and methodologies designed to speed

application development

End-user development any systems

development project in which the primary effort is
undertaken by a combination of business managers
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and users

Systems Development
Activities
Systems investigation:
problems and opportunities are identified and considered in light of

the goals of the business

Systems analysis:
study of existing systems and work processes to identify strengths,

weaknesses, and opportunities for improvement

Systems design:
defines how the information system will do what it must do to obtain

the problem solution

Systems implementation:
creation or acquisition of various system components detailed in the

systems design, assembling them, and placing the new or modified

system into operation
Systems maintenance and review:
ensures that the system operates as intended and modifies the

system so that it continues to meet changing business needs

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